Hello all
I have applied to become an australian permanent resident, and would like to purchase my first home when this happens (hopefully within 1-3 months). Here is my situation :
My income, before tax : $85k per year
Partner’s income, before tax : $55k fixed + commissions ($25k on average)I have been in my job for 3yrs, partner has is own business with 3 other investors.
Savings available : $25k
We can get family to help with the deposit.No credit cards.
No loan.
Very good credit history and showing regular savings.The places we have been looking at range between 450 and 550k.
Can we get a loan with no LMI? How much could we borrow?
Thanks
Lililesmisfits wrote:Hello all I have applied to become an australian permanent resident, and would like to purchase my first home when this happens (hopefully within 1-3 months).Hi, welcome to the forum.
lesmisfits wrote:Here is my situation : My income, before tax : $85k per year Partner's income, before tax : $55k fixed + commissions ($25k on average) I have been in my job for 3yrs, partner has is own business with 3 other investors. Savings available : $25k We can get family to help with the deposit. No credit cards. No loan. Very good credit history and showing regular savings. The places we have been looking at range between 450 and 550k. Can we get a loan with no LMI? How much could we borrow? Thanks LiliTo avoid paying LMI you generally have to have at least a 20% deposit.
Your max borrowing capacity will come down to the income your partner generates.
However, on your income alone you could probably come close to servicing a $450k – $500k without using your partners income (that's based on the info provided and assumption that you have no dependents).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Sorry – forgot to add something. LMI doesn't necessarily have to be viewed as a bad thing – this blog entry explains why.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I agree with Jamie, LMI can be beneficial…especially if it means you can get into the market quicker….for you to save up 20% + stamp duty ( don’t forgot stamp duty and another soft cost….this can add up to $20k+) will take a while and by that time the prices of property may have gone up further or stay the same- who knows…
Generally speaking NO LMI at 80% LVR, but there are selected lenders that will do NO lMI at 85% and discounted up to 95.
Regards
Michael.Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks Jamie and Michael for your advices and welcome
I have read a little more about LMI and realised that I would need to have close to 25% of the house price saved in order to avoid it. Which would take me a while you are right. The market at the moment seems to be in a good place for a first home buyer, I think there are good opportunities around as it has slow down a little.
I have been house hunting this morning, and from the houses I have seen, we would either buy a 500k house or a 450k and renovate for 50k.
Can you please advice if my calculations are right?
To buy a 500k house, it will cost us $30k on top for LMI ($10k), reduced stamp duty, transfer of land ergo, mortgage rego etc ($19k) and other lender charges ($1k).
Less the FHOG (7k), total cost of $523k.So I would need to get a mortgage of $523k, with a minimum deposit of $26k.
Is that right?
Thanks again for your help!
Lili
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